Jan 9 2010
ReneSola Ltd ("ReneSola" or the "Company") (NYSE: SOL) (AIM: SOLA), a leading global manufacturer of solar wafers and producer of solar power products, today announced that the Company has determined not to proceed with its acquisition of Dynamic Green Energy Limited ("Dynamic Green").
ReneSola and Dynamic Green, which operates through its wholly owned subsidiary Jiawei Solarchina Co., Ltd. ("Jiawei") and other Chinese operating subsidiaries, announced a share purchase agreement on September 23, 2009 under which ReneSola agreed to acquire 100% of the shares of Dynamic Green, subject to customary closing conditions.
While the acquisition and share purchase agreement were approved by both companies' boards of directors, the transaction has not been approved by local government agencies where an operating subsidiary of Jiawei is located. According to the terms of an agreement between Jiawei and the local government, the sale of shares of Dynamic Green requires relevant government approvals.
As indicated in the share purchase agreement between ReneSola and Dynamic Green, the transaction could be terminated without penalty if Jiawei did not obtain the relevant government approvals by December 31, 2009. After careful consideration, ReneSola has terminated discussions regarding the acquisition.
"Despite the termination of the Jiawei acquisition, ReneSola's downstream strategy remains intact and we continue to witness impressive organic growth in our JC Solar cell and module business," said ReneSola's Chief Executive Officer Li Xianshou. "We are still in a strong position to leverage our wafer manufacturing capabilities and deep customer relationships to quickly expand our downstream business. We expect to see significant top-line and bottom-line growth from our downstream business in 2010."
Source: http://www.renesola.com/